Tesla is ripping off customer?

[pagexk]

Summary: newly ordered Tesla Model S60D with glass roof is exactly same price as 75D, car haven't been delivered, but Tesla is asking for a $500 modification fee. It is not like I have already been driving my car for few days!!!

At this point, I feel this urge to search for other people's help, voice, and ideas since Im so helpless. How should I start? So I placed an order with Tesla from their Pasadena show room on the 30th of March, 2017, for my Model S 60D . My salesperson was very helpful and strongly recommended me to place the order before the end of march, he told me that Tesla is going to discontinue Model S 60 and 60D after the last day of march, so it is a huge deal if I can order before that. But after I placed the order in just 2 weeks, Tesla already lowered the 75D price to exactly what I am paying for the 60D(in 75D the glass roof is included in the price, which I did add glass roof with my 60D, so the price is exactly the same), which at that point, Tesla has not even begin to make my car yet! But this happen, non of Tesla associates told me anything about this huge news, which I found out later when I was browsing the Tesla website. So I contact my salesperson, he explained to me if I want to upgrade to 75D, I need pay $500 fee for the difference, then I told him I did some calculation myself, so what I am paying for the 60D is exactly same price as the 75D, and I haven't got my car, I don't feel like I should be paying for this fee for nothing. He told me to contact his manager, then I went on playing a game called "finding a person who can really give me an answer". I keep having this feeling that they are just dragging time, so later on they could tell me that" I am so sorry, your car is already been made, so there's nothing we can do about it" excuses like this.

Now this whole thing just doesn't seem to make any logically sense to me, I haven't got my car, Tesla haven't begin to make my car, what I am paying for is already exact the 75D!!! why am I paying $500 extra for nothing? what is there to modify? This is suppose to be a very exciting experience for a newly Tesla future owner, I was so exciting for my new order, but now this whole thing came up, I try to find someone I can talk to, I don't seem to get any help from people who work in Tesla, I talked to 2 different sales in their show room, (because I can't find my own sales, so I went to the store twice see if I can get luck to meet him there), 2 different representative on their costumer service phone, I try to contact my delivery specialist, I left voice mail for their show room manager as well. I really don't know how come it is so hard to find someone who can help me with a such big company like Tesla! It seems like after I paid my $2500 deposit, no one care about me anymore, is this how Tesla treat their customer? Wow, what a shopping experience! if anyone knows any useful information that can share with me, please do help! thank you all.

 

[phaduman]

Hi @pagexk, first of all, congratulations on your purchase. It was a wise decision you took to buy a Tesla, and 60D is one of the popular choices. The sales people wouldn't have been told of the upcoming lowered 75D pricing - it was a bit of a surprise to many. There could have been one of so many different outcomes for you, i.e. 75D pricing wouldn't have been lowered for a while more until you got delivery of your 60D - and then, you would have to pay $2K to get the battery upgrade etc. On the upside, given what you know, you are getting the 75D, power liftgate etc. for $500 more. Such change fees look like absurd and ripoff in certain cases, and by all means, pursue the option to talk to someone higher up, but don't get disheartened by $500 - this is a typical "change" fee that many Tesla owners have paid at so many different times when Tesla announced changes suddenly and those who ordered/paid just a few days ago got caught.

I would recommend get the change done for $500 before Tesla makes more announcements and before they start building your car. You can work up the $500 (or ask for 1st yr service for free - which is like ~$400 or so). The car is awesome - don't let $500 ruin the good feeling!

 

[AnxietyRanger]

Summary: newly ordered Tesla Model S60D with glass roof is exactly same price as 75D, car haven't been delivered, but Tesla is asking for a $500 modification fee. It is not like I have already been driving my car for few days!!!

At this point, I feel this urge to search for other people's help, voice, and ideas since Im so helpless. How should I start? So I placed an order with Tesla from their Pasadena show room on the 30th of March, 2017, for my Model S 60D . My salesperson was very helpful and strongly recommended me to place the order before the end of march, he told me that Tesla is going to discontinue Model S 60 and 60D after the last day of march, so it is a huge deal if I can order before that. But after I placed the order in just 2 weeks, Tesla already lowered the 75D price to exactly what I am paying for the 60D(in 75D the glass roof is included in the price, which I did add glass roof with my 60D, so the price is exactly the same), which at that point, Tesla has not even begin to make my car yet! But this happen, non of Tesla associates told me anything about this huge news, which I found out later when I was browsing the Tesla website. So I contact my salesperson, he explained to me if I want to upgrade to 75D, I need pay $500 fee for the difference, then I told him I did some calculation myself, so what I am paying for the 60D is exactly same price as the 75D, and I haven't got my car, I don't feel like I should be paying for this fee for nothing. He told me to contact his manager, then I went on playing a game called "finding a person who can really give me an answer". I keep having this feeling that they are just dragging time, so later on they could tell me that" I am so sorry, your car is already been made, so there's nothing we can do about it" excuses like this.

Now this whole thing just doesn't seem to make any logically sense to me, I haven't got my car, Tesla haven't begin to make my car, what I am paying for is already exact the 75D!!! why am I paying $500 extra for nothing? what is there to modify? This is suppose to be a very exciting experience for a newly Tesla future owner, I was so exciting for my new order, but now this whole thing came up, I try to find someone I can talk to, I don't seem to get any help from people who work in Tesla, I talked to 2 different sales in their show room, (because I can't find my own sales, so I went to the store twice see if I can get luck to meet him there), 2 different representative on their costumer service phone, I try to contact my delivery specialist, I left voice mail for their show room manager as well. I really don't know how come it is so hard to find someone who can help me with a such big company like Tesla! It seems like after I paid my $2500 deposit, no one care about me anymore, is this how Tesla treat their customer? Wow, what a shopping experience! if anyone knows any useful information that can share with me, please do help! thank you all.

Speculation is, Tesla pushed you and many others to make that 60D order as a quarterly demand lever and that they did not tell anyone about the price change, because that would have diminished the value of their demand lever. Basically Tesla wanted you to order early in the quarter to help with Q2/2017 delivery numbers, which late-quarter orders can not be guaranteed to do, as they may slip into the next quarter.

Once they have your order, their motivation to help you change it goes down, obviously. Add to that, Tesla is really a giant bureucracy, so the sales level staff do not have the usual discretion a dealership have to make things right without some higher-up making the call.

That's the why part, IMO. What can be done about it I'll let others suggest. One thing based on that why is of course a threat of order cancellation, they want your delivery so it might help. Assuming you are ready to really follow through and eat the deposit if need be.

 

[Mickie]

Yet another brand inductee burned by end-of-quarter tactics. As crappy as that is OP, I'd shell out the $500 if you get nowhere in arguing the ridiculousness of such an option change fee for pushing a button on a computer. It's not like you're insisting on them backing the car up to install a physical option.

You probably won't get anywhere and at this point, $500 is a great upgrade price and one I personally would jump at for my 60D, situations differing of course.

 

[AnxietyRanger]

Yet another brand inductee burned by end-of-quarter tactics

Bingo.

You probably won't get anywhere and at this point, $500 is a great upgrade price and one I personally would jump at for my 60D, situations differing of course.

Probably words of wisdom, as much as it sucks.

 

[LoL Rick]

If the price was $500 more at the time of ordering, would that have kept you from buying it?

 

[Mickie]

If the price was $500 more at the time of ordering, would that have kept you from buying it?

Probably the very best way of thinking of it, setting principle aside.

 

[whitex]

I'd just pay $500, and remove premium package (if you had it ordered) since you'll get the power liftgate anyways. Net change, $3000 less money for Tesla, if that is what they prefer. If you didn't have the premium package, I'd treat the $500 as a very cheap upgrade to 75 + power liftgate. Not a bad price. If Tesla offered me a $500 75 upgrade for my 60D, I'd buy it as a splurge. At $2,000 it's not quite worth it for me as it is the last 10KWhr which I would rarely, if ever use (since I wouldn't charge a 75 past 90% daily).

 

[calisnow]

This is a dick move by Tesla. It's one thing to lower prices without warning - but another thing entirely to pressure buyers with the implied threat of a good deal going away and then do the opposite. I'd put a letter in writing explaining to the store manager why you are unhappy and insist on the change for free. Tesla can and does make exceptions for angry customers when they choose to.

 

[ItsNotAboutTheMoney]

This isn't the first time that Tesla has made a change that people with orders want. Without a change fee people would change their order any time there's an improvement.

Just make a decision on whether changing is worth the $500.

 

[bob_p]

Whenever Tesla introduces changes, customers with submitted (but not yet delivered) orders can be affected.

Sometimes new features are added - and the new cars may get those features at no additional cost.

Sometimes the price has increased - and the new cars are delivered at the original price.

Sometimes features have been removed - and the cars in the production queue may continue to get the discontinued feature (like ventilated seats or a 60D).

And when customers with pending orders want to take advantage of the changes, Tesla charges a change fee ($500), because they have to adjust an order that is already being processed.

If Tesla has reduced the price - you can either keep your current order and delivery estimate or you can take advantage of the new changes and pay the relatively small change fee (compared to the cost of the car), and possibly see a delay in the delivery of your car (if they have to restart the processing with the new configuration).

 

[calisnow]

This isn't the first time that Tesla has made a change that people with orders want. Without a change fee people would change their order any time there's an improvement.

Just make a decision on whether changing is worth the $500.

This is fundamentally different because multiple customers are saying they were induced to make the purchase by sales reps with the implication that prices would in essence be going up soon for a base level Model S. It's slimy.

Whenever Tesla introduces changes, customers with submitted (but not yet delivered) orders can be affected.

Sometimes new features are added - and the new cars may get those features at no additional cost.

Sometimes the price has increased - and the new cars are delivered at the original price.

Sometimes features have been removed - and the cars in the production queue may continue to get the discontinued feature (like ventilated seats or a 60D).

And when customers with pending orders want to take advantage of the changes, Tesla charges a change fee ($500), because they have to adjust an order that is already being processed.

If Tesla has reduced the price - you can either keep your current order and delivery estimate or you can take advantage of the new changes and pay the relatively small change fee (compared to the cost of the car), and possibly see a delay in the delivery of your car (if they have to restart the processing with the new configuration).

You are ignoring the OP's main point.

 

[Robbit]

I'm on the flip side of this. I ordered a 100D early April. I wanted a glass roof and didn't choose high amp charging. A few weeks after I ordered these features became standard and the price for a 100D went up. My sales rep changed my order to include the glass roof & high amp charging at no extra charge AND kept me at the cheaper 100D price. Guess I got lucky!

 

[Mickie]

I'm on the flip side of this. I ordered a 100D early April. I wanted a glass roof and didn't choose high amp charging. A few weeks after I ordered these features became standard and the price for a 100D went up. My sales rep changed my order to include the glass roof & high amp charging at no extra charge AND kept me at the cheaper 100D price. Guess I got lucky!

I'm pretty sure tenured OAs have more pull to do these sorts of things. Probably something to think about the next time someone visits a boutique and a high school aged OA starts to approach..

 

[SomeJoe7777]

Dude, if I was in your shoes I'd consider myself extremely lucky and privileged.

You configured and paid what you believed was a very fair price for a 60D. You were happy with that deal.

And now, you get an opportunity to upgrade to a 75D (15 kWh - over 50 miles more range) for only $500. I'd be leaping at that deal in a New York minute.

How you could be upset with this is beyond me.

 

[AnxietyRanger]

Dude, if I was in your shoes I'd consider myself extremely lucky and privileged.

You configured and paid what you believed was a very fair price for a 60D. You were happy with that deal.

And now, you get an opportunity to upgrade to a 75D (15 kWh - over 50 miles more range) for only $500. I'd be leaping at that deal in a New York minute.

How you could be upset with this is beyond me.

Because Tesla pushed him to order with the impending change that this 60D pricepoint is going away.

Instead that pricepoint got better and the customer with the rushed order got a raw deal. Without being pushed the customer may well have waited and gotten the better deal...

Tesla would be wise to recognize they offered the customer misleading information and waive the fee.

 

[croman]

Tesla keeps doing this. They care about money more than good will. By

 

[boonedocks]

I'm on the flip side of this. I ordered a 100D early April. I wanted a glass roof and didn't choose high amp charging. A few weeks after I ordered these features became standard and the price for a 100D went up. My sales rep changed my order to include the glass roof & high amp charging at no extra charge AND kept me at the cheaper 100D price. Guess I got lucky!

....and I ordered a fully loaded 100D (-rear facing kids seats) about 3 weeks before you and paid $5,000 more than the similarly equipped 100D during the "sale week" and still more than the same 100D equipped car today. But such is life when dealing with such a transparent sales structure. Like I have read in other threads, if you knew what I paid for the same car 10 minutes before you in a traditional car dealership one of us would be just pretty unhappy. YMMV

 

[ahaer]

Speculation is, Tesla pushed you and many others to make that 60D order as a quarterly demand lever and that they did not tell anyone about the price change, because that would have diminished the value of their demand lever. Basically Tesla wanted you to order early in the quarter to help with Q2/2017 delivery numbers, which late-quarter orders can not be guaranteed to do, as they may slip into the next quarter.

Telsa reports actual car with customer deliveries as their official number and usually talks about number built in the shareholder letter or on the call. There is no benefit in the current quarter for them to push for orders...

 

[SomeJoe7777]

Because Tesla pushed him to order with the impending change that this 60D pricepoint is going away.

No, sir. I don't believe that for a minute. They most likely told him to hurry up and order because the 60D was going away, not the 60D pricepoint. And the salesman was correct -- the 60D did go away. If the customer was adamant that they wanted a 60D, then the salesman rightfully told him to order it before it got discontinued. Obviously, the salesman didn't know that the 75D would have it's price cut shortly after that. For that matter, the pricing decision may not have even been made and/or approved at that point.

You can't expect the salesman to advise the client based on information that he doesn't know or hasn't been told. The implication throughout this thread is that Tesla is engaging in malfeasance, i.e. intentionally misleading customers to pad sales, yet there is not a single shred of evidence to this notion. This is typical these days -- people invent a construct based on what they believe, not based on evidence, and then let their emotions run wild.